Grand Rapids Community College would see two types of financial aid drop by a total of $83,590 next school year if across the board federal cuts take effect Friday.MLive

GRAND RAPIDS, MI -- Colleges in West Michigan could be out tens of thousands of dollars in financial aid next school year if across the board federal spending cuts – known as the sequester – take effect Friday, according to a new report.

View full sizeProjections by the National Association for Student Financial Aid Administrators show how the sequester would impact two financial aid programs at West Michigan colleges.NASFAA

Grand Rapids Community College, for example, would lose $83,590 if cuts take effect under both programs, bringing its total disbursement to $903,099, projections show.

"These potential cuts represent broken promises to needy students and families across the country," NASFAA President Justin Draeger said in a statement. "By the time the sequester cuts are implemented most colleges will have provided students with financial aid awards, which will then have to be reduced, leaving families scrambling to fill the gap."

Elsewhere in West Michigan, Cornerstone University would see its grant disbursements shrink by $17,028, Davenport University would see a loss of $100,037.

The Federal Work Study Program provides funds for students with financial need to work part-time at their college or university to help cover tuition and other expenses. The Federal Supplemental Educational Opportunity Grant provides need-based grant dollars to low-income students.

Pell Grants, the largest pool of free federal dollars for low-income students, wouldn't be impacted by the sequester. Nor would the Federal Direct Loan Program, which includes Stafford Loans.

Some colleges and universities, such as Grand Valley State University, won’t see its disbursements for either the Federal Work-Study or Supplemental Educational Opportunity Grant change.

That’s because the sequester will only impact the “fair share” portion of an institution’s grant disbursement, not its base award, said Megan McClean, director of policy and federal relations at NSFAA.

She said the “fair share” portion is additional dollars that some institutions receive based upon financial need.

“Institutions that did not see any change would be institutions that were just receiving the base amount,” McClean said.
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